Principles of marketing chapter-8 promotion (pu)

this slide has been prepared according to the syllabus of Pokhara University, Nepal.

1. Promotion Promotion is persuasive communication with the customers. It refers to raising customer awareness of product or brand, generating sales, and creating brand loyalty. “Promotion is the element in an organization’s marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hope of influencing the recipients feelings, beliefs or behavior”. William Staton

2. The Marketing Communication Process M E S S A G E Sender Encoding Channel Decoding Receiver Feedback Noise Fig: Marketing Communication Process

3. Promotion Mix Strategy Promotional mix is the marketing strategies used by a company to market and promote its product and services. These strategies are broadly classified into two parts. Push Strategy Pull Strategy

4. Promotion Mix Strategy Push Strategy Pull Strategy A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand  for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

5. Push-Pull Strategy Push-Pull Strategy Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Technology-Push Market-Pull." CC BY-SA http://en.wikipedia.org/wiki/File:Technology-Push_Market-Pull.png View on Boundless.com Integrated Marketing Communication

6. Components of Promotion Mix Fig: components of promotion mix a Promotion mix Advertising Public Relations Personal Selling Sales Promotion

7. Advertising Media Any paid form of non-personal presentation of goods, services or ideas for action, openly paid for by an identified sponsor. Four important decision to be made when developing an advertisement program Setting advertisement objectives Setting advertisement budget Developing advertisement strategy Message decision Media decision Evaluating advertising campaigns

8. Advertisement objective Informative advertisement Persuasive advertisement Reminder advertisement Media decision Decide on reach, frequency and impact Choosing among major media types Select specific media vehicles Decide media timing Message decisions Message strategy Message execution (lifestyle, musical, personality symbol , fantasy, etc) Setting advertisement budget Affordable budget Percent of sales Competitive parity Objective and task

9. Personal Selling Personal selling is where businesses use people (the “sales force”) to sell the product after meeting  face-to- face with the customer.  The sellers promote the product through their attitude, appearance and specialist product knowledge.  They aim to inform and encourage the customer to buy, or at least trial the product. Kotler describes 6 roles for the sales force for personal selling Prospecting Communicating Selling Servicing Information gathering Allocating

10. Nature Flexibility Covers beyond target market O ne-on-one interaction/ face to face interaction

11. Importance of Personal Selling It is a flexible tool It involves minimum wasted effort It results in actual sale It provides feedback It complements advertising It educates customers   It assists the society

12. Relationship marketing Relationship marketing is the process of identifying, developing, maintaining, and terminating relational exchanges with the purpose of enhancing performance. Here are the main characteristics of relationship marketing: It focuses on partners and customers rather than on the company’s products. It puts more emphasis on customer retention and growth than on customer acquisition. It relies on cross-functional teams rather than on departmental-level work. It relies more on listening and learning than on talking.

13. Sales Promotion Sales promotion refers to short term incentives to encourage trial or purchase of a product. It is used to create a stronger and quicker purchase response. The characteristics of sales promotion are:- Duration is neither too short nor too long Provides “schemes”, “deals” or incentive to the buyers. Aims at quicker results in terms of faster sales higher sales volume. The target audience can be consumers, trade channels, and sales personnel.

14. Objectives of sales promotion To bring about a change in the demand pattern of products and services. To introduce new products or services. To attract new customers. To induce existing customers to buy more Helps the firm to remain competitive. To increase sales in off-seasons. To add to the stock of the dealers.

15. Methods of Sales Promotion(Tools) Sales promotion methods Consumer Promotion Free Samples Coupons Rebates Premium/Gifts Price-off Contests/Prizes Display/ Demonstration Trade Promotion Free Goods Allowances Price-off Sales Contest Gift Items Credit Facilities Trade Show Sales Force Promotion Sales Contest Trade Shows/Conventions Gift items Promotional Kits Bonus and Commision Fig: methods of sales Promotion

16. Public Relations Public relations are the practice of managing the spread of information between an individual or an organization and the public. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. NATURE: 1. Two- way communication   2. Assesses the attitudes of the public 3. Executes communication programs 4. PR aims to bring about harmonious and mutually advantageous adjustments between an organization and the community

17. Tools of PR Attendance at public events Press releases Newsletters Blogging Social media marketing

18. The end